Daily Spot trading volume across 44 exchanges has fallen to about $15 billion, a 70% drop from January's peak and the lowest level of 2026. The slide comes even as the global crypto market capitalization climbed to $2.18 trillion, and it coincides with rising exchange concentration, an exchange pulling out of Japan, and $246.82 million in liquidations over a single day.
Daily Spot trading volume across 44 exchanges has dropped to about $15 billion, a 70% decline from January's peak and the lowest amount of 2026, according to data from The Kobeissi Letter. The drop stands out because the global cryptocurrency market capitalization was trading at $2.18 trillion after a 1.23% hike over the previous day.
The pullback in activity is steep: the market saw only two days in early February when trading volumes topped $100 billion. Fewer investors now appear to be actively buying and selling, with several seemingly waiting for a catalyst, such as approval of the CLARITY Act or a shift in monetary policy, before committing new money.
Thinning volume raises liquidity concerns
A decline in trading volume causes a decline in liquidity, which in turn affects the strength of price moves. Price swings on low volume signal low participation, leaving rallies or declines more exposed to abrupt reversals because of the lack of liquidity. Still, less activity doesn't always mean institutions are selling — it could simply mean they are being cautious and waiting for better market conditions.
Activity concentrates on fewer exchanges
Over 60% of Spot trading volume is concentrated on the six biggest exchanges, a concentration that leaves smaller platforms facing higher trading costs and thinner order books. Against that backdrop, Bitget declared on the 3rd of August that it would progressively discontinue its cryptocurrency trading services for citizens of Japan.
Liquidations and DEX volume echo the same trend
The thinning market coincided with 64,537 traders being liquidated in the last day. Total liquidations reached $246.82 million, according to CoinGlass data. The largest single liquidation was an ETHUSDT position worth $24.37 million on Aster. Spot decentralized exchange trading volume has also fallen to one of its lowest levels in almost two years.
Source: AMBCrypto
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